Identifying & Reaching Your. Super Customers

Transcription

1 Identifying & Reaching Your Super Customers

2 INTRODUCTION Most marketers are familiar with the 80/20 rule. 80% of your engagement and revenue comes from 20% of your audience. Average Customers This small but mighty group are super customers. AUDIENCE Whether your ratio is actually 70/30 or 15/85, acquiring and retaining super customers will yield your company higher ROI. 20% 80% Of course, that is if you know who your super customers are, and how to reach them. This report will show you how to do exactly that. REVENUE Super Customers 2

3 TABLE OF CONTENTS There are many different types of super customers. Some visit your website frequently, while others are card-carrying loyalty members. Each chapter walks through how to identify, engage and bring these different levels of super customers back to you, over and over again. CHAPTER ONE Identifying Opportunities Uncover Heavy Digital Engagers CHAPTER TWO Reaching Big Spenders Attract More Frequent Buyers CHAPTER THREE Getting More From Loyalists Nurture Your Most Devoted Fans

4 CHAPTER ONE Identifying Opportunities Uncover Heavy Digital Engagers Micro-Segments: Looking Within Your Audience When it comes to measuring online engagement, it s important to look at engagement metrics beyond visits. Let s say GAP identified Millennial women as their largest online audience. Within that segment, who is spending more time with GAP? Visiting more pages? These sub-segments are not only expressing stronger interest in GAP products, they also create more opportunities for GAP to convert them during their shopping journey. Engagement With Gap.com, By Audience Millennial Women African-American Millennial Women Asian Millennial Women If we further segment Millennial women, we see specific groups engage Visit Share (Apparel).47%.44%.48% more with GAP, in different ways. In this case, either Total Visits 1,009, ,552 64,111 by spending a larger share of their online time with Average Time Spent 8:39 10:51 8:01 GAP.com, or spending more time onsite. Super Customers 4

5 New Segments: Different from Your Target Audience Remember that your largest audience isn t necessarily your best. While the majority of ASOS visitors are Millennial women, Millennial men are more engaged on multiple levels. Knowing this, ASOS might invest more in attracting young men, who spend more time and click around a lot more than young women do. Engagement With ASOS.com, By Audience Millennial Women Millennial Men Visit Share (Apparel) 0.93% 0.89% Total Visits 1,854,530 1,432,600 Average Time Spent 6:21 6:48 Average Page Views Although Millennial women represent a larger audience for ASOS.com, Millennial Time Share 1.02% 1.11% men are more engaged, visiting more pages per session and spending more time onsite (both overall and per page) Avg Time Per Page 15 seconds 36 seconds compared to their female counterparts. Super Customers 5

6 Partnerships: Reach Highly Engaged Fans Demographics are great, but there s more than one way to define an audience. You can also create segments based on interests, brand affinities and even celebrity fandom. Unique groups like these can present powerful partnership opportunities ones that provide you with access into an already engaged fanbase. For example, based on the information below Forever 21 might decide to partner with Kylie Jenner to create an exclusive clothing line, like their competitor TopShop. Engagement With Forever21.com, By Audience Millennial Women Kylie Jenner Fans Audience Overlap Index Visit Share (Apparel) 2.07% 4.23% Visitors Kylie Jenner Fans Total Visits 4,106, ,402 Forever21.com 941 Average Time Spent 7:46 8:23 Asos.com 687 Kylie Jenner fans spend a lot of time on Forever21.com, and Average Page Views Hm.com 668 visit more pages while there. Forever21.com also has a stronger Time Share 2.77% 6.31% Gap.com 349 visitation overlap with Kylie fans than competitor brands. ACTION STEPS: When identifying super customers, weigh engagement metrics beyond visits and visit share. Look for segments even smaller segments with higher time spent, time share and page views per session than your broader target audience.

7 CHAPTER TWO Reaching Big Spenders Attract More Frequent Buyers Sell to Your Best Customers First For a high-end super market like Whole Foods, there s a big distinction between aspirational shoppers, people who buy a couple items here and there, and super customers who purchase all of their groceries at Whole Foods weekly. To zero in on those big spenders, we created two different Whole Foods customer audiences. Let s figure out where Whole Foods can reach these high-spending super customers, and how they can better meet their shopping needs in-store. Regular Customers 1-3 times per month Super Customers 4-9 times per month Super Customers 7

8 Channel Opportunity: Advertising to Super Customers Whole Foods Super vs. Regular Customers Visit Share Super Customers Regular Customers % Relative Difference Search Engines 17.4% 17.33% +.4% When comparing the behavior of Whole Foods super customers Social Networks 11.74% 11.26% + 4.3% against regular customers, we see that super customers spend 3.73% 3.83% -2.6% more time on social media. Which social media sites should Whole Foods prioritize for marketing? Super customers are more likely than regular customers to visit sites like Reddit, Serious Eats and Yelp before the grocery industry. To attract big spenders, local Whole Foods branches should build strong Yelp reviews, and possibly pursue native advertising campaigns on Serious Eats. +45% +112% +17% +26% Super Customers 8

9 Merchandising: What do Your Best Customers Want? Let s say Whole Foods wants to make more data-driven decisions about which products they feature at the end of the aisle. They intend to feature a unique oil besides olive oil: while it may appear that average shoppers are most interested in grapeseed oil, super customers are much more interested in avocado oil. Whole Foods Super vs. Regular Customers Overlap Index Regular Customers Super Customers Coconut Oil Searchers +30% +61% Grapeseed Oil Searchers +139% +13% Avocado Oil Searchers +19% +119% ACTION STEPS: Digital behavioral data can provide a powerful window into what your customers need, and where to reach them online. However, it s essential to identify the unique behaviors and demands of your super customers, rather than just your entire customer base. This enables you to target bigger spenders, and increase the ROI of your marketing and merchandising efforts.

10 CHAPTER THREE Getting More From Loyalists Nurture Your Best Rewards Members Levels of Loyalty: Exclusive vs. Non-Exclusive Loyalty members are self-identified super customers. They ve chosen you as a preferred brand, and will spend more money with you on average. But how deep does their loyalty run? In the case of hotel rewards, for example, many travelers carry multiple memberships. Nearly half of all Marriott Rewards members are also loyalty members at Hilton. When booking travel, this shared audience might divide their attention amongst several options whereas Marriott s exclusive audiences will almost certainly book through them whenever possible. Hilton vs. Marriott Loyalty Member Overlap Let s find out... Hilton Honors Marriott Rewards 72, ,299 92,655 Who are these dedicated loyalists? How can Marriott reach them? Where can they find more people like them? Super Customers 10

11 Know Your Audience: Catering to Exclusive Loyalists Understanding more about your exclusive loyalty members enables you to cater services to attract the higherimpact members. Although the age of shared loyalty members appears quite even, exclusive Hilton audiences skew towards years old, while Marriott exclusives skew towards 35-44: Hilton vs Marriott Loyalty Members - Age Index (Increased Likelihood) +60% +50% +40% +30% +20% +10% Average Hilton Exclusive Shared Loyalty Members Marriott Exclusive This could be why Marriott s exclusive loyalty members are much more likely to be younger parents (35-44), with children under the age of two. Knowing this, Marriott could attract more devoted loyalty members by offering amenities like daycare, infant pools, and entertainment options for toddlers. Likelihood to Have Children Under 2 Yrs Old Shared Loyalty Members 7% less likely 0 39% less likely 84% more likely Super Customers 11

12 Targeting Strategy: Reach More Loyalists Like Them Where can Marriott reach their most devoted loyalty members, and more people like them? We ranked the travel planning websites that Marriott s exclusive loyalists visit, and highlighted those ranking higher than Hilton s exclusive audience. This is where Marriott s most faithful rewards members plan their trips: Travel Planning Sites Visit Share Rankings Hilton Exclusive Marriott Exclusive Travel.state.gov 1 1 TripSavvy 2 2 Airfarewatchdog 4 3 AAA 3 4 US News Travel 6 5 INSIDER 5 6 Marriott s exclusive loyalty audience TripCheck 14 7 spends more time than Hilton loyalists on sites like Airfarewatchdog, US News World Nation 7 8 Travel, and especially TripCheck these would be good sites to partner with Recreation.gov 8 9 (perhaps offer a special sign-on bonus for new loyalty members) in order to reach Culture Trip 9 10 the most devout super customers. ACTION STEPS: Loyalty members are perhaps your most powerful super customers but many of them are members of multiple rewards programs. Focus on the behaviors and attributes of your exclusive rewards members, in order to better attract and target more people like them.

13 KEY TAKEAWAYS Identify new opportunity segments by considering alternative engagement metrics, besides just visitation. Looking at data points like time spent, page views per session and time share can shed light on audiences that are highly engaged with your brand. Knowing your customers is important, but knowing your super customers is crucial. Compare the behavior and demands of your super customers against your average customers, to ensure you re not missing the opportunity to focus on the needs of your high-value customers first. Measuring loyalty member overlap can help you focus on your most devoted rewards members, and build campaigns around high-impact loyalists for whom you are the only brand in their consideration set. Super Customers 13

14 Ready to identify your Super Customers? will help you uncover hidden opportunities and higher-roi customers. FIND OUT HOW METHODOLOGY CHAPTER 1 Data pulled using Digital Behavior Reports in Hitwise AudienceView over 4 rolling weeks from March 4 - March 31st, Demographic audiences (i.e. Asian Millennial Women ) based on consumer characteristics. Kylie Jenner Fans audience base on people searching for variations of kylie jenner and visiting fan websites. Website visitation overlap pulled using Crosstab report. CHAPTER 2 Data pulled using Hitwise AudienceView over 4 rolling weeks from March 1 April 7th, Channel behavior pulled in the Digital Behavior Report, which weighed the relative difference in visitation between Whole Foods Super Customers (consumers who shop at Whole Foods 4+ times per month) and Regular Whole Foods Customers (consumers who shop at Whole Foods 3 times or less per month). CHAPTER 3 Data pulled using Hitwise AudienceView over 4 rolling weeks from Feb 25 March 24th, Hilton loyalty and Marriott loyalty audiences based on consumers who are exclusive members of Hilton Honors, of Marriott Rewards, or of both of these programs (but not of other hotel rewards services). Demographic data based on Audience Profiler report. Website behavior based on Digital Behavior Report.